Survey: Vacation rentals lucrative for owners

Tuesday

Apr 1, 2014 at 12:01 AMApr 1, 2014 at 2:10 AM

Almost two-thirds of people who rent out their homes to tourists for short stays are able to cover at least half of their mortgage payments with the income, according to a report released this week by HomeAway, an international online vacation rental booking service.

Almost two-thirds of people who rent out their homes to tourists for short stays are able to cover at least half of their mortgage payments with the income, according to a report released this week by HomeAway, an international online vacation rental booking service.

More than half of surveyed owners — 54 percent — cover at least three-quarters of their mortgage payments by renting space to tourists, the survey found.

In order of importance, owners use the income to pay for maintenance and upgrades to their property, to help cover mortgage payments, for everyday living expenses, for discretionary spending, to supplement savings and for other needs, according to the survey.

Owners reported an average rental rate of $217 per night for this coming summer, and an average weekly rental rate of $1,520.

Just over half of owners already have booked at least half of their available dates for summer, indicating strong demand, the survey found.

Average annual rental income is more than $27,000, with homes made available to guests an average of 36 weeks per year.

Younger people are beginning to invest in homes that can be rented out to tourists.

In 2013, the average owner purchased a vacation rental home at age 47 — down six years from 2012, the survey found.